LIQUIDITY AND CAPITAL RESOURCES

12 Months Ended

Dec. 29, 2012

Liquidity and Capital Resources [Abstract]

LIQUIDITY AND CAPITAL RESOURCES

NOTE 1:           LIQUIDITY AND CAPITAL RESOURCES

At December 29, 2012, Tofutti Brands, Inc. (the “Company”) had approximately $471 in cash compared to $1,594 at December 31, 2011.  Net cash used in operating activities for the year ended December 29, 2012 was $1,107 compared to $910 used in operations for the year ended December 31, 2011.  Net cash used in operating activities for the year ended December 29, 2012 was primarily the result of our net loss of $824 as well as increases in inventory and related deferred costs.

During the year ended December 29, 2012, $16 was used in financing activities compared to $24 used in financing activities during the year ended December 31, 2011.

The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations.  However, due to the net loss for the year ended December 29, 2012 and cash used in operations, the Company may require additional financing in order to accomplish or exceed their business plans for future periods. The Company is instituting cost cutting measures in fiscal year 2013 as a way to increase profitability in future periods. The Company is instituting cost cutting measures in fiscal year 2013 as a way to increase profitability in future periods.

The Company’s ability to introduce successful new products may be adversely affected by a number of factors, such as unforeseen cost and expenses, economic environment, increased competition, and other factors beyond the Company’s control.  Management cannot provide assurance that the Company will operate profitably in the future, or that it will not require significant additional financing in order to accomplish or exceed the objectives of its business plan.  Consequently, the Company’s historical operating results cannot be relied on to be an indicator of future performance, and management cannot predict whether the Company will obtain or sustain positive operating cash flow or generate net income in the future.